DOJ's $50,000 contract for mail courier services awarded to Federal Express Corporation

Contract Overview

Contract Amount: $50,000 ($50.0K)

Contractor: Federal Express Corporation

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $137/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAIL COURIER SERVICES FOR MEDICAL B1 FEDEX SHIPPING SERVICES IN ACCORDANCE WITH 15JPSS25D00000293

Place of Performance

Location: PLANO, COLLIN County, TEXAS, 75024

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $50,000 to FEDERAL EXPRESS CORPORATION for work described as: MAIL COURIER SERVICES FOR MEDICAL B1 FEDEX SHIPPING SERVICES IN ACCORDANCE WITH 15JPSS25D00000293 Key points: 1. Contract awarded for essential mail courier services, supporting the Federal Prison System. 2. Sole-source award to Federal Express Corporation indicates potential lack of competitive bidding. 3. Fixed-price contract structure aims to control costs for the duration of the agreement. 4. Contract duration of 364 days suggests a short-term or interim service need. 5. Geographic focus on Texas for delivery services. 6. No small business set-aside noted, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: fair

The contract value of $50,000 for 364 days of mail courier services appears reasonable for a sole-source award. However, without competitive bidding, it is difficult to benchmark against market rates or assess if the government secured the best possible value. The fixed-price nature provides cost certainty, but the absence of competition raises questions about potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to Federal Express Corporation. The data does not indicate any justification for this approach, such as an emergency or a unique capability. The lack of competition means that the government did not explore options with other potential providers, which could lead to less favorable pricing and terms.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to drive down costs, potentially resulting in higher expenditures for taxpayers.

Public Impact

Benefits the Federal Prison System by ensuring timely delivery of mail and packages. Services delivered include express delivery and courier functions. Geographic impact is concentrated in Texas. Workforce implications are minimal, as this contract utilizes an existing service provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award raises concerns about transparency and fairness in procurement.
Absence of small business participation limits opportunities for smaller courier companies.

Positive Signals

Fixed-price contract provides cost predictability.
Award to a well-established provider like Federal Express suggests reliability.
Contract supports essential functions of the Federal Prison System.

Sector Analysis

The mail courier and express delivery services sector is highly competitive, with numerous established players and a significant market size. This contract falls within the logistics and transportation industry, specifically focusing on expedited delivery. Benchmarking this contract's value is challenging due to the sole-source award, but the overall market offers a wide range of pricing options.

Small Business Impact

This contract does not appear to include a small business set-aside. The award to Federal Express Corporation, a large corporation, suggests that subcontracting opportunities for small businesses are unlikely unless explicitly mandated or pursued by the prime contractor. This limits the direct impact on the small business ecosystem for this specific procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's procurement and contract management divisions. As a delivery order under a larger framework (implied by the contract number format), oversight might be integrated into existing program management. Transparency is limited due to the sole-source nature, and specific accountability measures would depend on the terms outlined in the contract document itself.

Related Government Programs

Federal Bureau of Prisons Logistics Contracts
Department of Justice Mail Services
Express Delivery Services for Government Agencies

Risk Flags

Sole-source award without clear justification
Potential lack of competitive pricing
Limited transparency in procurement process

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $50,000 to FEDERAL EXPRESS CORPORATION. MAIL COURIER SERVICES FOR MEDICAL B1 FEDEX SHIPPING SERVICES IN ACCORDANCE WITH 15JPSS25D00000293

Who is the contractor on this award?

The obligated recipient is FEDERAL EXPRESS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $50,000.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the justification for awarding this contract on a sole-source basis to Federal Express Corporation?

The provided data indicates the contract was awarded on a 'NOT COMPETED' basis, which typically signifies a sole-source procurement. Without further documentation or context, the specific justification for this sole-source award is unclear. Common reasons for sole-source contracts include urgent and compelling needs, unique capabilities possessed by only one vendor, or when only one responsible source is available. For a service like mail courier, it is unusual not to have a competitive process unless there are specific circumstances, such as an existing indefinite-delivery, indefinite-quantity (IDIQ) contract where this is a delivery order, or a highly specialized requirement. Further investigation into the contract file would be needed to ascertain the official justification.

How does the $50,000 contract value compare to similar mail courier services for federal agencies?

Benchmarking the $50,000 value for 364 days of mail courier services is challenging without knowing the specific volume, types of services (e.g., express, standard, international), and geographic scope required by the Federal Prison System. However, for a sole-source award, this amount might be considered fair if it covers a significant volume or specialized needs. In a competitive market, similar services could potentially be procured at a lower cost through competitive bidding, especially for standard domestic delivery. For context, larger federal agencies often have multi-million dollar contracts for nationwide courier services, indicating that $50,000 likely represents a localized or specific need within Texas.

What are the potential risks associated with a sole-source award for courier services?

The primary risk associated with a sole-source award for courier services is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not be receiving the most cost-effective solution available in the market. Additionally, sole-source awards can raise concerns about fairness and transparency in the procurement process. There's also a risk of vendor complacency, where the awarded contractor may have less incentive to innovate or provide superior service compared to a situation with active competition. Finally, it limits the government's ability to explore new technologies or service models offered by other providers.

What is the expected performance standard for Federal Express Corporation under this contract?

While the specific performance standards are not detailed in the provided data, contracts for mail courier services typically include requirements related to delivery times (e.g., next-day, two-day), package handling (e.g., ensuring no damage), tracking capabilities, and reporting. Federal Express Corporation, as a major logistics provider, is expected to meet industry-standard service level agreements (SLAs). The contract likely specifies key performance indicators (KPIs) that the Bureau of Prisons will monitor. Failure to meet these standards could result in penalties or contract termination, depending on the contract's terms and conditions.

What is the historical spending pattern for mail courier services by the Federal Prison System or the Department of Justice?

The provided data is for a single contract and does not offer historical spending patterns. However, federal agencies, particularly those with widespread operations like the Federal Prison System, typically rely heavily on courier and mail services. Historical spending would likely show consistent expenditure in this category, potentially fluctuating based on operational needs, policy changes, or the consolidation of contracts. Analyzing past solicitations and awards for similar services by the DOJ or its components would reveal trends in contract values, durations, and the prevalence of competitive versus sole-source awards over time.

Industry Classification

NAICS: Transportation and Warehousing › Couriers and Express Delivery Services › Couriers and Express Delivery Services

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fedex Corp

Address: 3610 HACKS CROSS RD, MEMPHIS, TN, 38125

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $50,000

Exercised Options: $50,000

Current Obligation: $50,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 15JPSS25D00000293

IDV Type: IDC

Timeline